Personal Finance expands into South Africa by acquiring 100% of RCS

Personal Finance (PF) has signed a binding agreement for the acquisition of RCS, a South African specialist in retail credit card programs.

It’s a significant transaction which illustrates PF’s international development strategy and which gives additional support to the 2016 development plan.

South Africa – 53 million inhabitants today – has a strong potential for economic and demographic growth and development. In addition consumer credit benefits from a robust regulation in South Africa. RCS is also an opportunity for PF to participate in the consolidation of the South African consumer finance market, as many retailers, which have developed an in-house consumer finance unit in order to support their sales, now seek to divest their consumer finance arm, which they consider non-core. This movement will create growth opportunities for PF in the medium term. Organic growth possibilities also exist for the Automotive Financial Services business.

Thierry Laborde, Chief Executive of BNP Paribas Personal Finance highlights : “with this transaction, in line with our international growth strategy, we seize an opportunity in a new country in which we had no presence yet. South Africa’s potential for growth combined with the quality of RCS’ management allow us to consider with confidence our entry into the South African market.”